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Accounting Policies of Rishab Special Yarns Ltd. Company

Mar 31, 2014

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basts.

iii. Investments

Investments are stated at cost.

iv. Tangible Assets

Tangible Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets

Impairment loss is provided when carrying amount of assets exceeds recoverable value. Excess of carrying amount over recoverable value is charged to Profit & Loss Account. Recoverable value is the higher of an asset''s net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pm rata basis for the period of use.

vii. Valuation of Inventory

Inventories are valued at the lower of cost and estimated realizable value. Cost of Inventories is computed on weighted average/FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

viii. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income

Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and is capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only if there is reasonable certainty of realization in future.


Mar 31, 2013

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments

Investments are stated at cost.

iv. Tangible Assets

Tangible Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets

Impairment loss is provided when carrying amount of assets exceeds recoverable value. Excess of carrying amount over recoverable value is charged to Profit & Loss Account. Recoverable value is the higher of an asset''s net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, '' 1956 on pro rata basis for the period of use.

vii. Valuation of Inventory

Inventories are valued at the lower of cost and estimated realizable value. Cost of Inventories is computed en a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred -<- bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

viii. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income

Current tax is provided after blowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future.


Mar 31, 2011

I. Basis of Accounting: The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition: the company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments: Investments are stated at cost.

iv. Fixed Assets :Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets: Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation: The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use.

vii. Valuation of Inventory: Inventories are valued at the lower of the cost and estimated realizable value. Cost of Inventories is computed on a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the Current year.

viii. Retirement Benefits : Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income: Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future. NOTES ON ACCOUNTS


Mar 31, 2010

1. Accounting Conventions

I. Basis of Accounting - The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition - The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments- Investments are stated at cost. tv. Fixed Assets - Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets - Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation - The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use. However during the year no depreciation has been provided as fixed assets are not in use.

vii. Excise Duty - The refunds of excise in the form of Modvat credit available on inputs of materials as per Excise laws are deducted from the cost of the materials and accordingly closing stock of input materials are valued.

viii. Valuation of Inventory - Inventories are valued at the lower of the cost and estimated realizable value. Cost of Inventories is computed on a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

ix. Retirement Benefits - Liability in respect of gratuity is calculated by management and provided in books accordingly.

x. Borrowing Cost - Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such assets are ready for intended use. Other borrowing costs are charged to the Profits. Loss Account.

xi. Taxes on Income - Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future.


Mar 31, 2009

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments

Investments are stated at cost.

iv Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available en the capital goods.

v. Impairment of Assets

Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use. However during the year no depreciation has been provided as fixed assets are not in use.

vii. Excise Duty

The refunds of excise in the form of Modvat credit available on inputs of materials as per Excise Laws are deducted from the cost of the materials and accordingly closing stock of input materials are valued.

viii. Valuation of Inventory

Inventories are valued at the lower of the cost and estimated realizable value. Cost of inventories is computed on a weighted average/FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

ix. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

x Borrowing Cost

Borrowing Costs attributable to acquisition and construction of qualifying qssets are capitalized as a part of the cost of such asset upto the date when such assets is ready for its intended use. Other borrowing costs are charged to the Profit & Loss Account. xi Taxes on Income Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961 .Deferred Tax is recognised subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognised only to the extent that there is reasonable certainty of realisation in future.

 
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